Great-West Lifeco announced strong results for the second quarter Q2 2020. Net earnings were $863 million, compared to $459 million for the same quarter last year, announced the company Aug. 4. Base earnings for Q2 2020 were $706 million compared to $627 million for the same quarter of 2019.
Lifeco stated that its second quarter results were positively impacted “by market recoveries as markets rebounded from the significant declines in the first quarter of 2020 at the onset of the COVID-19 pandemic. The Company also experienced positive net cash inflows, particularly at Putnam during the second quarter.”
The company's capital position remained strong with a LICAT Ratio for Canada Life, Lifeco's major Canadian operating subsidiary, of 132%.
"Our strong results this quarter reflect our disciplined and resilient business model, robust balance sheet, effective risk framework and high-quality investment portfolio," said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco Inc. "While concurrently managing our COVID-19 pandemic response, we've moved key strategic initiatives forward, including digital technology investments, and mergers and acquisitions such as the sale of GLC Asset Management and addition of Personal Capital. Lifeco remains well-positioned to drive business growth through differentiation and capital deployment."
In the second quarter, the company’s Canada segment had base earnings of $315 million compared to $292 million in the second quarter of 2019, an increase of 8%.
Lifeco says this increase “was primarily due to higher contributions from investment experience, changes in certain income tax estimates and strong underlying business results.” Net earnings for Q2 2020 were $353 million, up from $280 million for the same period a year earlier.